Data were collected on 365 managers representing five managerial levels in order to provide an initial field test of an equity model based on Adams (1963) and Lawler (197 1). Exploratory path analysis was performed using LISREL VI to identify the primary paths affecting equity perceptions and those leading to the outcomes of job performance and voluntary turnover. The primary variables influencing pay equity were salary level, job level, pay valence, and prior job performance. The data suggested that pay equity perceptions have an impact on voluntary turnover but not necessarily on job performance. The impact on turnover, however, was indirect, through its influence on pay satisfaction, job satisfaction, organizational commitment, and intent to leave. The major predictors of job performance were prior job performance and salary level.Adams ' (1963, 1965) equity theory has been described as one of the more valid frameworks available for understanding human motivation (Miner, 1984). The theory has been applied to four broad areas of human interaction: exploiter-victim relationships, philanthropist-recipient relationships, business relationships, and intimate relationships (Walster, Walster & Berscheid, 1978). Within the business relationships category, attention has focused on exchanges between employers and their employees, and on the comparisons employees make against referents in assessing whether their outcomes from work (e.g. pay) are fair. Yet, while laboratory tests of the theory's major hypotheses have generally been supportive (Mowday, 1979), there has been relatively little field research. Moreover, with few exceptions, the field research has neglected the potential effect of pay equity perceptions on job performance(seeLord &Hohenfeld, 1979and Oldham, 1986 for exceptions) and voluntary turnover (see Dittrich & Carrell, 1979; Oldham, 1986 and Telly, French & Scott, 197 1 for exceptions). The neglect of job performance is surprising in light of Adams' (1963) original formulation, which predicted changes in work quantity and quality under certain inequitable circumstances, and in light of the numerous early laboratory studies which found that perceived inequity, both over-reward and underreward, can affect job performance (see Mowday, 1979, for a review). As to voluntary turnover, Adams (1963) referred to 'leaving the field' as a possible last resort to perceptions of severe inequity, and in a laboratory study, Schmitt & Marwell (1972) found that a significant proportion of subjects chose to forgo rewards and withdraw from * Requests for reprints.
146Timothy P . Summers and William H . Hendrix inequitable situations where withdrawal was the only alternative to an inequitable situation. This paucity of research is especially surprising given the obvious importance to organizations of job performance and voluntary turnover.In terms of attitudinal outcomes of perceived inequity, most field research has focused on pay satisfaction (cf. Berkowitz, Fraser, Treasure & Cochran, 1987;Ronen, 1986;Scholl, Cooper, & Mc...